China allows yuan to start trading against ruble

Section:

By Judy Chen
Bloomberg News
Monday, November 22, 2010

http://www.bloomberg.com/news/2010-11-22/china-allows-yuan-to-start-trad...

SHANGHAI -- China started allowing the yuan to trade against the Russian ruble from today in the interbank market as policy makers promote the currency's use in global trade and finance.

The move will help "facilitate bilateral trade between China and Russia and help develop yuan trade settlements," said a statement published on the website of the China Foreign Exchange Trade System, a subsidiary of the People's Bank of China. The ruble traded at 4.6711 per yuan as of 5:30 p.m. in Shanghai, according to CFETS data. It was little changed from yesterday at 4.6712, according to data compiled by Bloomberg.

"The pace of internationalizing yuan is accelerating," said Zhao Qingming, a senior analyst in Beijing at China Construction Bank Corp., the country's second-largest lender. "The direct trading between yuan and ruble will help expand trade settlements in the two currencies."

... Dispatch continues below ...



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Prophecy Receives Permit To Mine at Ulaan Ovoo in Mongolia

VANCOUVER, British Columbia -- Prophecy Resource Corp. (TSX-V:PCY, OTCQX: PRPCF, Frankfurt: 1P2) announces that on November 9, 2010, it received the final permit to commence mining operations at its Ulaan Ovoo coal project in Mongolia. Prophecy is one of few international mining companies to achieve such a milestone. The mine is production-ready, with a mine opening ceremony scheduled for November 20.

Prophecy CEO John Lee said: "I thank the government of Mongolia for the expeditious way this permit was issued. The opening of Ulaan Ovoo is a testament to the industrious and skilled workforce in Mongolia. Prophecy directly and indirectly (through Leighton Asia) employs more than 65 competent Mongolian nationals and four expatriots. The company also reaffirms its commitment to deliver coal to the local Edernet and Darkhan power plants in Mongolia."

The Ulaan Ovoo open pit mine is 10 kilometers from the Russian border and within 120km of the Nauski TransSiberian railway station, enabling transportation of coal to Russia and its eastern seaports. Thermal coal prices are trading at two-year highs at Russian seaports due to strong demand from Asian economies.

For the complete press release, please visit:

http://prophecyresource.com/news_2010_nov11.php



China is allowing greater use of its currency for cross-border transactions to reduce reliance on the U.S. dollar, after Premier Wen Jiabao said in March he is "worried" about holdings of assets denominated in the greenback. Purchases of U.S. currency to contain yuan gains contributed to a $194 billion increase in the nation's foreign-exchange reserves in the third quarter, boosting the total to a record $2.65 trillion.

Industrial & Commercial Bank of China Ltd. and Bank of China Ltd. completed the first trade between the two currencies, CFETS said in a separate statement issued later today. The transaction amount was 1 million yuan ($151,000), it said. There was one trade today, according to Bloomberg data obtained from CFETS.

The reference rate, which is published at around 9:15 a.m. every day, was set at 4.6711 per yuan. The currency is allowed to trade up to 5 percent on either side of the fixing, according to the CFETS statement.

China started permitting the Malaysian ringgit to trade against the yuan on Aug. 19. Traders can also buy and sell the yuan against the dollar, the euro, the yen, the Hong Kong dollar and the British pound.

The yuan declined 0.03 percent to 6.6416 per dollar. The ruble gained 0.1 percent to 31.006.

The value of international trade transactions settled in the Chinese currency totaled 126.5 billion yuan in the third quarter, 160 percent more than in the three months through June, the People’s Bank of China reported on Nov. 2.

China first approved yuan use for trade settlement in July 2009 and Zheng Yang, an official at the People's Bank of China's Shanghai branch, said on Sept. 27 that the value of such transactions may reach 200 billion yuan by the end of this year. The total for the first nine months was 197.1 billion yuan.

CFETS also said it will consider allowing trading in forwards and swaps between the yuan and the ruble. China’s Premier Wen Jiabao will visit Russia and Tajikistan from Nov. 22-25, Foreign Ministry spokesman Hong Lei said Nov. 16.

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Sona Drills 85.4g Gold/Ton Over 4 Metres at Elizabeth Gold Deposit,
Extending the Mineralization of the Southwest Vein on the Property

Company Press Release, October 27, 2010

VANCOUVER, British Columbia -- Sona Resources Corp. reports on five drillling holes in the third round of assay results from the recently completed drill program at its 100 percent-owned Elizabeth Gold Deposit Property in the Lillooet Mining District of southern British Columbia. Highlights from the diamond drilling include:

-- Hole E10-66 intersected 17.4g gold/ton over 1.54 metres.

-- Hole E10-67 intersected 96.4g gold/ton over 2.5 metres, including one assay interval of 383g of gold/ton over 0.5 metres.

-- Hole E10-69 intersected 85.4g gold/ton over 4.03 metres, including one assay interval of 230g gold/ton over 1 metre.

Four drill holes, E10-66 to E10-69, targeted the southwestern end of the Southwest Vein, and three of the holes have expanded the mineralized zone in that direction. The Southwest Vein gold mineralization has now been intersected over a strike length of 325 metres, with the deepest hole drilled less than 200 metres from surface. "The assay results from the Southwest Zone quartz vein continue to be extremely positive," says John P. Thompson, Sona's president and CEO. "We are expanding the Southwest Vein, and this high-grade gold mineralization remains wide open down dip and along strike to the southwest."

For the company's full press release, please visit:

http://sonaresources.com/_resources/news/SONA_NR19_2010.pdf